2009 Remodeling Cost vs. Value Report
Monday, January 04, 2010
2009 will go down as a year of adjustments. Most of us no longer fret over gasoline costs over $2.50 a gallon. Many of us are adjusting our sights when it comes to buying cars…and…yes, housing. But one thing that has changed might be a bit unexpected - where do we get the biggest ‘bang-for-the-buck’ in terms of remodeling projects?
As evidenced by the rise of professional staging, we know first impressions are tantamount to a successful sale, and Sellers are willing to pay for a professional’s guidance when it comes to ‘positioning’ the Property. But perhaps even more important than the interior appearance, the ‘curb appeal’ must be right to motivate the potential Buyer to get out of their car and come inside where they can take in the ambiance that has been created.
This year’s National Association of REALTORS’ (NAR), Remodeling Cost vs. Value Report highlights the importance of a home’s first impression. With exterior projects returning a high percent of project costs upon resale, REALTORS can help give your home curb appeal while adding value to the real estate transaction.
For the first time, on a national level, a majority, (8 out of 10) of the top remodeling projects in terms of costs recouped were exterior replacement projects that cost less than $14,000. Certain types of door and siding replacements, as well as wood deck additions all returned more than 80% of project costs upon resale. A steel entry door replacement - a new addition to this year’s list - recouped 128.9% of costs, followed by upscale fiber-cement sliding replacements at 83.6%. Wood deck additions recouped 80.6% of costs.
The 2009 Remodeling Cost vs. Value Report compares construction costs with resale values for 33 midrange and upscale remodeling projects comprising additions, remodels and replacements in 80 markets across the country.
On a national level, the project with the biggest improvement from 2008 was the attic bedroom addition, recouping 83.1% of remodeling costs compared to 73.8% in 2008. The only other interior project that landed in the top 10 was a minor kitchen remodel with 78.3% costs recouped.
Other exterior projects in the top 10 include midrange vinyl and upscale foam-backed vinyl sliding replacements, which returned more than 79% of costs. In addition, several types of window replacements - midrange wood, midrange vinyl, and upscale vinyl - all returned more than 76% of costs upon sale.
Similar to last year’s report, the least profitable remodeling projects in terms of resale value were home office remodels and sunroom additions, returning only 48.1% and 50.7% of project costs.
If you want more information, consult with your Fourteen West, REALTORS or Askew Realty professional!
- Scott Askew
Posted in: Intown Atlanta Real Estate News